Fiscal 2010-’11 first-quarter revenues for the Town of Marana exceeded expenses by $1.9 million, with income close to expectations, Finance Director Erik Montague told the town council Nov. 16.
From that $1.9 million, Marana expects to use $1.3 million to satisfy debt service in December, Montague told the council. The remainder would be used once budgeted one-time projects and programs are completed, he said in a release.
As compared to the same period a year ago, collections in the general fund for the first quarter that began July 1 are up 5.05 percent, Montague said. Receipts for the quarter totaled $4.8 million, 25.5 percent of Marana’s budgeted expectation.
Town expenditures are at 17.8 percent of budget projections.
“Town departments have done an excellent job managing their programs and responsibilities,” Town Manager Gilbert Davidson said in the release. “We have been proactive in regard to our fiscal affairs, and have positioned ourselves strategically for the future.”
The town has been “very responsive in managing our budget over several cycles,” Montague told the council.
Marana’s general fund has three major sources – sales tax revenues, accounting for two-thirds of its money; state-shared revenue, 20 percent; and licenses and permits, 6 percent.
Marana’s construction sales tax revenue is down 4.84 percent.
Retail sales tax revenue is up .22 of 1 percent. That growth is “pretty anemic,” Montague said, “but I’ll take it. It is a positive growth, which is reassuring.”
Restaurant sales tax revenues are up 10.49 percent in comparison to the first quarter a year ago.
State-shared revenues reached $1.4 million for the quarter, 24.5 percent of the budgeted sum. State-shared sales tax revenues were “slightly off,” Montague said.
Marana has seen an increase over expectation in revenue from new single-family residences, Montague said. It budgeted impact fee income from 200 new single-family homes during the fiscal year that began July 1. In the first quarter alone, 90 permits were pulled.
Montague said Arizona is bracing for a shortfall of $825 million in the fiscal year that begins July 1, 2011, and an anticipated shortfall of $1.4 billion the following year.
“It’s anticipated to be a long recovery,” Montague said.
State financial struggles may impact local governments, he said. “We must make sure decision-makers are aware of the importance of those revenue streams to us,” Montague continued.